22 July 2021 · Motoring Tips & Advice

What is a Finance Lease?

A quick guide to vehicle financing.

If you need a new work car, van or ute to help your business grow, the first step is deciding how to finance that investment.

If you don’t want to tie up your business capital in your work vehicles, a Finance Lease is worth considering. It provides flexibility and financial control over your vehicles – making it a popular choice for many business owners. 

How does a Finance Lease work? 

When your business takes out a Finance Lease, the lender owns the asset and leases it to you for an agreed term. With no initial outlay, a Finance Lease can ease cash flow with fixed payments spread over the lease period. You also have the option to retain full control of all vehicle maintenance and repairs or include them in your monthly payment.

At the end of the lease period, you can choose to purchase the vehicle off ORIX for the agreed residual amount set by the ATO and ORIX may consider your offer.  Otherwise, you will need to pay the difference between the sale value of the vehicle and the agreed residual amount.

Advantages of a Finance Lease

You can choose the deposit amount and the lease term, typically 12 to 60 months, to make repayments work for your business budget and cash flow and enjoy a fixed monthly payment and interest rate with no unexpected surprises.

Other benefits of a Finance Lease include:

  • Cost certainty - Vehicle running costs such as servicing, tyres, roadside assistance, registration and CTP can all be included in your monthly payment.
  • No initial financial outlay – No deposit required.
  • Tax efficient - If the vehicle is used for business purposes, you may be able to claim the monthly leasing cost as a tax deduction*.
  • Freedom to decide - At lease end, choose what you want to do with the vehicle – keep it, sell it or trade it in for another new vehicle (with a new Finance Lease) after buying the vehicle from ORIX. If you do sell the vehicle, any profit you make is yours to keep. 
  • Vehicle specs to suit your business - Include any accessories or fit out costs to make the vehicle work for your business. 
  • Optional service card - Managing running expenses is even easier with all costs (such as fuel, tolls and registration) charged to one service card, with one monthly payment.

Moving forward with a finance lease

We’ve teamed up with ORIX Australia to provide our business customers with a range of flexible vehicle leasing and finance solutions. To find out if a Finance Lease is right for you, speak to our finance team today by enquiring below or call 9735 8400.

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Phil Gilbert Hyundai

Finance & Insurance

646 Parramatta Road
Croydon, NSW 2132

02 9735 8400
Finance & Insurance Manager
Sam Anttoun

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* Talk to your tax agent or financial advisor about whether you can claim the upfront GST and deductions for the depreciation and interest payments for your business.